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 Could Outsourced Project Delivery Be the Key to Delivering Projects More Cost Effectively? | PM Tools - PM Tools

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Could Outsourced Project Delivery Be the Key to Delivering Projects More Cost Effectively?

Why outsource Project Delivery?

Many organisations have insufficient trained, experienced people to deliver key projects and often delay them until the right person is available, causing the business to suffer through the delay in delivering benefits. Alternatively, contractors are hired and, when project delays are encountered, the hired contractor and their agency earn more money, often diluting the business case. Outsourced Project Delivery enables the client to meet the resource needs of the project portfolio whilst reducing the financial risk to the project and to the organisation by engaging an implementation partner to deliver the project on behalf of the client.

What is outsourced Project Delivery?

Outsourced project delivery is where projects are delivered either in their entirety or in stages by an implementation partner, usually for a fixed cost. This enables the client to meet the resource demands of the project portfolio, to their plan, budgets and quality expectations and ensures that the Implementation partner is accountable for delivery.

How does outsourced Project Delivery work?

The client engages with an Implementation Partner and creates mutually acceptable terms of reference covering objectives, resources required, budget, the plan, risk, business requirements. From this document, the detailed plan is created breaking down the project into stages and deliverables, which ultimately drive the project costs. It is important that an agreement is reached on what the project is going to deliver and how much those deliverables will cost to produce in order to arrive at a fixed cost. In addition to the expertise necessary to deliver the project, the Implementation Partner will also provide an account manager to participate in the project steering group to oversee the suppliers’ project manager, ensuring  both the suppliers and clients’ interests and taken care of. For example, in the event that additional resource is required or issues cannot be resolved both the client and supplier are represented in the decision making process.

What if?
The cost of your project was dictated by the deliverables, where the project was completed to meet your time scales and to your budget, minimising your financial risk, your costs remained fixed for the duration of the project and where the implementation partner bore an equal share of the risk by retaining accountability for the quality and delivery of the project.

Chris Hallett is the founder/owner of Harper Hallett Consulting and is their resident change expert. Chris has personally let many change projects over the last 20 years as well a coaching project mangers and teams and more recently become a public speaker on Business Change and Project Delivery.
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